PHOENIX - GreenPower Motor Company Inc. (NASDAQ: GP) (TSXV: GPV), a manufacturer of zero-emission electric vehicles, has received orders for six electric school buses from RWC Group, its Arizona dealer. These orders, funded by the EPA Clean School Bus Program, will serve three different school districts within the state.
The Osborn School District #8 in Phoenix is set to receive three Type D BEAST school buses, while the Joseph City School District will acquire one Type D BEAST and one Type A Nano BEAST. Additionally, the Roosevelt School District No. 66 in Phoenix will get one Type D BEAST bus. This initiative is part of a broader effort under the EPA's Clean School Bus Program, supported by the Bipartisan Infrastructure Law with a budget of $5 billion over five years to transition to zero-emission and clean school buses.
The GreenPower Type D BEAST is a 40-foot, all-electric school bus that can accommodate up to 90 passengers and boasts a range of up to 150 miles. The Nano BEAST, awarded by School Transportation News, offers a range of up to 140 miles and can carry up to 24 passengers. Both models feature dual port charging and the option for wireless charging, emphasizing the company's commitment to sustainable student transportation.
Tom Hartman, General Manager – Bus for RWC Group, praised the performance of the GreenPower buses, citing their design and reliability in providing safe and sustainable transportation for school children. GreenPower's President, Brendan Riley, echoed this sentiment, underlining the importance of clean transportation for students' health and the environment.
GreenPower, founded in Vancouver, Canada, and operating primarily out of Southern California, has been listed on the Toronto exchange since November 2015 and completed its U.S. IPO and NASDAQ listing in August 2020. The company's all-electric vehicles are designed to be purpose-built and battery-powered, incorporating global suppliers for key components to facilitate maintenance and meet warranty requirements.
This announcement is based on a press release statement from GreenPower Motor Company Inc. and contains no endorsements of claims or promotional language. It presents the facts surrounding the purchase of electric school buses for Arizona school districts, as part of a national push towards cleaner, zero-emission vehicles in the education sector.
In other recent news, GreenPower Motor Company reported a significant surge in demand for its electric vehicles in its first-quarter earnings. The company, well-known for its all-electric vehicles, particularly school buses and specialty vehicles, has capitalized on the growing environmentally friendly transportation market. GreenPower's sales pipeline is robust with orders for 28 Cab & Chassis vehicles in Canada, 20 EV Star Cargo Plus and passenger vans, and 30 school buses for California and Oregon.
The company ended the quarter with nearly $14 million in working capital and approximately $2 million available on its EDC facility. Analysts from the earnings call highlighted that GreenPower anticipates delivering most orders by the end of the year, contributing to expected revenue increases in subsequent quarters.
Furthermore, the West Virginia manufacturing facility is expected to drive gross profit margins higher as throughput improves. The company has received follow-on orders for its electric vehicles, indicating potential for exponential sales growth. Lastly, GreenPower's unique position in the electric school bus market is bolstered by California's new regulations, presenting a multibillion-dollar opportunity.
InvestingPro Insights
As GreenPower Motor Company Inc. (NASDAQ: GP) continues to make strides in the zero-emission electric vehicles market, the company's financial health and stock performance provide a mixed picture. With a market capitalization of $39.18 million, the company is relatively small in the automotive industry. The latest data from InvestingPro shows that GreenPower is experiencing a significant return over the last week, with a 28.81% increase in stock price. This surge is part of a broader trend, as the company has also seen strong returns over the last month and three months, with increases of 49.02% and 36.94%, respectively.
However, the company's financial metrics indicate some challenges. GreenPower has a negative P/E ratio of -1.81, reflecting the company's lack of profitability over the last twelve months. The adjusted P/E ratio for the same period also stands at -1.9. One of the InvestingPro Tips suggests that GreenPower may face difficulty making interest payments on its debt, which is a concern for potential investors. Additionally, the company's gross profit margin is relatively low at 11.3%, which indicates that GreenPower suffers from weak gross profit margins. This could be a point of concern for investors looking for companies with stronger profitability potential.
Despite these challenges, GreenPower has some positive financial indicators. The company's liquid assets exceed its short-term obligations, which suggests that it has a degree of financial flexibility in the near term. This is a critical aspect for investors who are concerned about a company's ability to meet its immediate financial obligations. Moreover, the company's recent orders for electric school buses highlight its potential to capitalize on the growing demand for zero-emission vehicles, particularly in the public sector.
For readers interested in a deeper dive into GreenPower's financial health and stock performance, InvestingPro offers additional insights and tips on their platform, which can be accessed at https://www.investing.com/pro/GP. There are currently 16 additional InvestingPro Tips available for GreenPower, providing a comprehensive analysis for those considering an investment in the company.
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